Thailand SEC Supports LuxSE Listings by Domestic Firms

Source: Regulation Asia Editors, Regulation Asia 2020-06-11

Thai bond issuers can list their securities on LuxSE’s BdL or Euro MTF; or alternatively obtain a profile listing on the SOL to gain visibility on the Luxembourg Green Exchange.

Thailand’s SEC (Securities and Exchange Commission) has concluded its review of LuxSE (Luxembourg Stock Exchange) rules on securities offerings, its latest step to establish a cross-border trading link with the European nation.

In late January, the two bourses agreed to explore the creation of a cross-border trading link, which would allow securities issued by Thai companies to be offered for sale on the LuxSE. At the time, the SEC said it would conduct a review of the LuxSE rules and map them against Thailand’s own rules for securities offerings.

Having completed the review, the SEC says Thai bond issuers will be able to list their securities on LuxSE’s Bourse de Luxembourg (BdL) or Euro Multilateral Trading Facility (Euro MTF); or alternatively obtain a profile listing on the Securities Official List (SOL).

The SOL is designed for issuers looking for visibility and for whom admission to trading is not a prerequisite. Such issuers will gain visibility on the LGX (Luxembourg Green Exchange), a dedicated platform for green, social and sustainable securities, if they provide full disclosure and fulfil their reporting obligations.

If investors are interested in trading bonds listed on the SOL platform, they must conduct those trades in the Thai bond market, explained SEC director-general Ruenvadee Suwanmongkol. Thai issuers interested in this route will first have to translate their prospectuses, she said.

Companies that wish for their securities to be tradeable may also choose to list on the BdL or Euro MTF markets, however the requirements to list are more stringent, Ruenvadee added.

The SEC will prepare a securities registration guide for companies interested in listing on LuxSE markets, in a bid to support and facilitate listings of Thai companies in Luxembourg.

LuxSE already boasts listings from 73 sovereign states and 12 supranational institutions.

Thailand SEC Supports LuxSE Listings by Domestic Firms

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